Gallant Ispat to raise Rs 40.5 cr through public offer

Gallant Ispat today announced its plan to launch an initial public offering to raise Rs 40.5 crore. The company fixed the IPO price at Rs 50 a share.
The issue opens for subscription on September 22 and closes on September 24, the company said in a news release. The objective of the IPO is to set up an integrated steel plant and modern flour mill at Sector -23, GIDA, Gorakhpur, Uttar Pradesh.The company will issue 81 lakh equity shares. The net offer to the public would be around 25.03% of the fully diluted post-issue paid-up capital of the company.
The money to be raised will be used to part-finance the setting up of the integrated steel plant consisting of the sponge iron plant (capacity — 99,000 MTPA), mild steel billets (capacity — 1,62,380 MTPA), re-rolled products (capacity — 1,67,400 MTPA) and captive power plant (capacity — 16 MW).